Which principle emphasizes collecting only necessary information to safeguard proprietary data?

Prepare for the ACFE Certified Fraud Examiner (CFE) Financial Transactions and Fraud Schemes Test with our comprehensive quiz. Engage with flashcards, multiple choice questions, hints, and explanations. Ace your exam!

The principle of data minimization focuses on the collection and processing of only the necessary information that is essential for a specific purpose. This approach is vital for safeguarding proprietary data and ensuring that an organization does not hold more information than needed, which in turn reduces the risk of potential data breaches and unauthorized access. By limiting the amount of data collected, organizations can better protect sensitive information, comply with privacy regulations, and maintain customer trust.

In contrast, the other principles focus on different aspects of data handling. Data accumulation refers to the collection of large amounts of data, which could increase the risk of sensitive information being exposed. Data validation is concerned with ensuring the accuracy and integrity of the data received rather than limiting the data being collected. Data retention relates to how long data is kept, rather than the necessity of collecting the data in the first place. Hence, data minimization is the principle that specifically addresses the need to collect only the information that is essential, thereby helping to protect proprietary data effectively.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy